India’s proposal to create a cross-border digital payments framework among BRICS nations is a welcome step towards making international transactions faster, cheaper and more accessible. Rather than rushing towards a common BRICS currency, India appears to be favouring interoperability between existing national payment systems and central bank digital currencies. This pragmatic approach is important because BRICS members have different economies, currencies and monetary policies. India’s experience with UPI gives it a credible platform to lead such an initiative, while the Reserve Bank of India’s work on the digital rupee provides valuable technological experience.
The larger benefit could be reduced transaction costs and greater convenience for businesses, tourists and migrant workers. Cross-border payments remain expensive and slow in many parts of the world, and stronger links between BRICS payment systems could reduce dependence on traditional intermediaries. At the same time, the initiative should not be presented merely as a challenge to the US dollar. India has rightly maintained that the immediate objective is smoother payments using national currencies, rather than creating a BRICS currency or pursuing de-dollarisation as an end in itself.
The real test, however, will lie in implementation. BRICS has expanded considerably, bringing together countries with differing regulatory regimes, geopolitical interests and levels of digital infrastructure. Questions over data protection, cybersecurity, money laundering, settlement mechanisms and currency risks must be addressed before such a system can operate at scale. India should therefore push for common technical and regulatory standards while ensuring that participation remains voluntary and transparent. If handled carefully, the initiative can turn India’s digital-payment success into a practical instrument of global economic cooperation and strengthen BRICS as a forum for the Global South.